What is Bitcoin?
Bitcoin is one of the most common cryptocurrencies in the world.
But what are cryptocurrencies?
Cryptocurrencies are virtual and digital currencies or coins, which are based on the blockchain technology.
They have exchange values in terms of traditional fiat currencies such as the Ksh, USD, GBP, JPY, and so forth.
There are several types of cryptocurrencies such as Bitcoin, Litecoin, Ripple, Ethereum, Dash, and many others.
All of these can be traded anywhere in the world including Kenya.
Wondering how to trade Bitcoin in Kenya?
Then you are in the right place because, in this post, I will reveal how to trade Bitcoin in Kenya.
Ensure to read to the end to grasp every detail.
Trading Bitcoin in Kenya.
It is typical of currencies to have their exchange values against each other fluctuate from time to time.
This is where the opportunity to trade avails.
Buying a currency when its exchange value is low and selling it when its exchange value shoots, allows you to make profits.
Here are two ways to trade Bitcoin in Kenya:
- Operating a Bitcoin Reserve.
- Trading Bitcoin Online.
Operating a Bitcoin Reserve.
Here, you buy Bitcoin at low costs, store them in Bitcoin wallets and then sell them at higher prices when their prices rise.
To Operate a Bitcoin Reserve in Kenya:
- Mobilize enough capital – you need enough money in Kenya shillings to start this kind of business. This solely depends on your intended scale of operation. Small scale traders can begin Bitcoin trading with as low as Ksh.1000 but for reasonable profitability, a capital base of about Ksh.10,000 is enough. If you intend to start big, you can set aside a larger sum.
- Open a Bitcoin Wallet – you need a wallet into which your Bitcoin will be sent and stored. What you will actually be doing is buying Bitcoin from sellers into your wallet, where you will store those Bitcoin until the right time to sell.
- Do Market Research – you don’t want to go into a business you are not familiar with. You may want to know what the current prices of Bitcoin are, and what those prices may be in the future. The goal is to buy Bitcoin at the current low prices when you anticipate the exchange values to rise. This is so that you can sell later at higher prices making a profit.
Buy Bitcoin at fairly low prices
After your thorough market research, you must have established that Bitcoin’s price is most likely to rise. If so, you can go ahead and buy Bitcoin from different sources. Know the current prices so that you are not ripped off. Go ahead to look for sellers from trusted sites such as localbitcoins.com or even your trusted friends. You just log into your Bitcoin wallet, go to Receive, and copy the unique receive wallet address and send it to the seller to transfer Bitcoin into your wallet. You can then send them the agreed amount in Kenya Shillings via common payment methods such as M-Pesa, Bank transfers, and others which you agree.
- Store Bitcoin in Bitcoin wallet and Back them up – once you receive Bitcoin from various sources into your wallet, your only option is to store them until the right time to sell. While storing them in your wallet, you also need to back the wallet important keys in a secure offline location such as flash discs or prints. You do not want to be logged out of your own wallet and lose access to millions worth of Bitcoins, do you? Then consider backing up your Bitcoins safely.
- Sell Bitcoin at higher prices – in your market research, you projected when the price of Bitcoin would peak. When that time comes and the current price is something you can make a reasonable profit out of, you are then going to sell your Bitcoin. Look for interested buyers at trusted sites like localbitcoins.com and any other.
This method of trading Bitcoin is risky though. Beware of scammers with fishy intentions.
Trading Bitcoin Online.
Bitcoin, just like other currencies, have their exchange values listed on the asset market. There, you can stake amounts of money to make predictions of price rises and falls of Bitcoin. You make profits if your forecasts turn out correct.
To trade Bitcoin Online in Kenya:
- Sign up with a broker that offers Bitcoin – you need an experienced and regulated broker which you can trust with your money. One such broker which offers returns of up to 92% of your invested amount in Kenya is Olymp Trade.
- Deposit Money in live account – once you have registered and logged in, you will need to deposit money in your trading account. The minimum deposit amount is only Ksh.1,000 for Olymp Trade.
- Do Market Research – you need to understand what is happening in Bitcoin price. Where it has been before, where it is now and where it is headed, in order to make accurate forecasts.
- Open positions in the direction Bitcoin price is headed – this, for Olymp Trade, depends on whether you are trading on Fixed Time or Forex Mode.
- Fixed Time Mode – you only set your trade duration, the amount to invest for that trade, and then press up or down depending on where you think the price is headed. At expiration, if your forecast is correct, you earn the indicated percentage of the invested amount.
- Forex Mode – analyze the direction where the price of Bitcoin is headed, open a position in that direction, and then target a certain amount of profit with a Take Profit Order. You can also tame your losses with a Stop Loss Order at a distance at most half the distance of your Take Profit Order from entry.
This method of trading Bitcoin is secure, fast, and reliable.
Do you believe in the future of crypto? Then it is time to make money trading Bitcoin in Kenya.